You never know when a financial need will pop-up. You know, the kind where you need to add a new addition to your home for your grandmother, new bathroom, or a larger carport. The question for you, the homeowner, is where is the money going to come from? Well, many property owners often forget that the loan for that home improvement is right in your, well, home. It's called a home equity loan; also known as a line of credit, from the lender who financed your home in the first place. This could be the parachute you need and some banks, maybe yours, offer the following:

* No new application required

* No new bank fees

* Competitive loan rates

* Potential tax advantages

Advantages Of A Home Equity Loan

Actually, getting that loan for a home improvement is not complicated. You simply pledge your home as collateral and it won't make any difference on how your credit is or was. The bank will be using your home as protection for them in the guise of a second mortgage. Another thing in your favor is the lender can be more liberal because they will view your home as the best collateral possible. Why, you may ask? Well you can't pick up your house, leave town and disappear or hide it someplace. Ergo, the lender can feel quite comfortable that you will be making your monthly payments on time.

Note: To make the home improvement loan work best for you in the first place make sure you have enough equity in the home to get the loan. And if you are still thinking that a credit card loan might be a better deal, it won't. Interest rates on credit cards are obscene. Use a home equity loan.